American Well Corporation (AMWL): Business Model Canvas [10-2024 Updated]
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American Well Corporation (AMWL) Bundle
In the rapidly evolving landscape of healthcare, American Well Corporation (AMWL) stands out with its innovative business model that integrates technology and patient care. By leveraging strong partnerships and a robust digital platform, American Well delivers scalable telehealth solutions that enhance access and efficiency in healthcare delivery. Explore the intricacies of their Business Model Canvas to understand how they create value for diverse customer segments while navigating the challenges of the healthcare industry.
American Well Corporation (AMWL) - Business Model: Key Partnerships
Collaborations with health systems and plans
American Well Corporation (Amwell) collaborates extensively with health systems and health plans to enhance their digital healthcare services. Their enterprise platform facilitates provider-to-provider virtual care, enabling use cases such as stroke evaluations and virtual nursing. For health systems, Amwell's services are often supplemented by the Amwell Medical Group (AMG), which provides clinical services on a fee-for-service basis. In the three months ended September 30, 2024, Amwell reported total subscription fees of $26.2 million, down from $28.4 million in the same period of 2023.
Partnerships with technology providers
Amwell partners with various technology providers to enhance its digital health offerings. These partnerships support the development and integration of the Amwell Converge platform, which has been pivotal in expanding service offerings. The company capitalized $12.7 million in software development costs during the nine months ended September 30, 2024. Furthermore, Amwell's platform allows for easy integration with existing technology investments of health plans, thereby increasing their operational efficiency and service delivery capabilities.
Alliances with government healthcare entities
Amwell has established alliances with government healthcare entities to broaden its service reach. For instance, the Amwell Converge platform is tailored to meet the needs of government healthcare systems, providing efficient and accessible care options. This includes services for urgent care, primary care, and specialty consultations. The company is focused on delivering solutions that cater to the diverse needs of government clients, which is a key strategic priority for 2024.
| Partnership Type | Key Metrics | Notes |
|---|---|---|
| Health Systems | Subscription Fees: $26.2M (Q3 2024) | Down from $28.4M in Q3 2023. |
| Technology Providers | Capitalized Software Development: $12.7M (9M 2024) | Investment in Amwell Converge platform. |
| Government Entities | Services Offered: Urgent care, primary care, specialty consultations | Focus on delivering tailored healthcare solutions. |
American Well Corporation (AMWL) - Business Model: Key Activities
Development of the Amwell Converge platform
The Amwell Converge platform is a focal point for American Well's operations and strategic initiatives. The platform was designed to enhance digital health services and improve telehealth delivery. As of September 30, 2024, the Company reported capitalized software development costs of $12.7 million related to the ongoing enhancements of the Amwell Converge platform.
In the nine months ended September 30, 2024, American Well recognized a net loss of $168.1 million, which included expenses associated with the development of the platform. The decrease in research and development expenses was attributed to a reduction in employee-related costs and consulting spend as the peak development phase was completed.
Delivery of telehealth services
American Well's telehealth services are central to its business model, with the Company reporting a total of 4.5 million visits completed using its enterprise software for the nine months ended September 30, 2024. This represents a slight decrease from 4.6 million visits in the same period of 2023.
For the three months ended September 30, 2024, the overall visits performed were 1.38 million, with 76% conducted by client providers. The Company generated revenue of $61.0 million for the three months ended September 30, 2024, with costs of revenue amounting to $38.4 million. The Company also reported that fees received from the provision of telehealth services and Carepoint devices were $7.3 million for the three months ended September 30, 2024.
Management of provider network operations
American Well manages a comprehensive provider network to facilitate its telehealth services. The Company reported a loss from operations of $174.8 million for the nine months ended September 30, 2024, which reflects the operational costs associated with maintaining and expanding its provider network.
In terms of financial performance, total costs and operating expenses for the nine months ended September 30, 2024, were $358.1 million, which included significant expenditures related to the provider network. As of September 30, 2024, the Company had an accumulated deficit of $1.92 billion, indicative of the long-term investments made in its network operations and technology.
| Activity | Key Metrics | Financial Impact (Q3 2024) |
|---|---|---|
| Development of Amwell Converge | Capitalized Software Development Costs | $12.7 million |
| Delivery of Telehealth Services | Total Visits Completed | 4.5 million |
| Management of Provider Network | Loss from Operations | $174.8 million |
| Revenue from Services | Total Revenue | $61.0 million |
| Costs of Revenue | Operating Costs | $38.4 million |
American Well Corporation (AMWL) - Business Model: Key Resources
Proprietary Carepoint devices
American Well's proprietary Carepoint devices are essential assets that enhance their telehealth services. These devices facilitate in-person care by integrating digital access points with existing equipment like televisions and iPads. The Carepoint carts and peripherals are designed to support various clinical applications, from urgent care to chronic disease management.
Skilled healthcare professionals in AMG
The American Well Group (AMG) relies on a network of skilled healthcare professionals to provide quality care. As of September 30, 2024, AMG has made significant investments in recruiting and training these professionals, which is crucial for maintaining service quality and client satisfaction. The operational costs associated with these healthcare professionals are reflected in the company’s financial statements, with employee-related expenses forming a considerable part of their overall costs.
Advanced software and IT infrastructure
American Well's advanced software and IT infrastructure form the backbone of its business model. The company has capitalized $12.7 million in software development costs during the nine months ended September 30, 2024. This investment supports the Converge platform, which enables seamless integration of telehealth services. The platform's functionality allows for a range of healthcare applications, enhancing the overall patient experience.
| Key Resource | Description | Investment (as of September 30, 2024) |
|---|---|---|
| Carepoint Devices | Proprietary devices for telehealth integration | Valued as part of overall asset base |
| Healthcare Professionals | Skilled staff providing telehealth services | $26.1 million in employee compensation |
| Software and IT Infrastructure | Advanced systems supporting telehealth delivery | $12.7 million in capitalized software costs |
American Well Corporation (AMWL) - Business Model: Value Propositions
Seamless integration of virtual and in-person care
The Amwell platform enables a hybrid care model that integrates both virtual and in-person services. As of September 30, 2024, approximately 70% of visits were facilitated through the Amwell Converge platform, demonstrating its capability to provide a seamless healthcare experience. The platform supports various use cases, including urgent care, primary care, and specialty consultations, enhancing care delivery across different environments .
Enhanced access to healthcare services
American Well Corporation aims to improve accessibility to healthcare through its digital solutions. The company reported total revenue of $61.0 million for Q3 2024, with subscription fees contributing significantly to this figure. For the nine months ended September 30, 2024, subscription revenue was $78.6 million, reflecting a strategic expansion in its client base, despite challenges such as customer churn during re-platforming.
| Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $61.0 million | $61.9 million | -1.5% |
| Subscription Revenue | $26.2 million | $28.4 million | -7.8% |
| Net Loss | $(44.0) million | $(137.1) million | +67.8% |
| Cash and Cash Equivalents | $244.6 million | $372.0 million | -34.3% |
Scalable digital care solutions for health providers
American Well provides scalable digital care solutions that cater to health systems and plans. The enterprise platform allows providers to implement various digital care use cases, enabling them to expand their service offerings. The company has seen a positive response to its Converge platform from strategic accounts, indicating its effectiveness in meeting the evolving needs of healthcare providers.
For the nine months ended September 30, 2024, total liabilities amounted to $132.9 million, with stockholders' equity reported at $350.1 million. This financial positioning supports the scalability of its digital solutions as the company continues to invest in technology and infrastructure to enhance service delivery.
American Well Corporation (AMWL) - Business Model: Customer Relationships
Dedicated account management for clients
American Well Corporation (AMWL) has established a dedicated account management system to ensure personalized service for its clients. The company focuses on maintaining strong relationships with its key strategic accounts, which have been pivotal in its revenue generation. For the three months ended September 30, 2024, the company recognized a revenue of $61.046 million, which included contributions from strategic account management efforts.
Ongoing support and training services
The company provides ongoing support and training services to its clients to enhance their experience with the platform. In the nine months ended September 30, 2024, American Well incurred $60.883 million in sales and marketing expenses, which included costs related to training and customer support initiatives aimed at increasing service utilization and customer satisfaction.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue from strategic accounts | $61.046 million | $61.922 million | -1.4% |
| Sales and marketing expenses | $60.883 million | $64.659 million | -5.2% |
| Training and support costs | Estimated at 20% of sales and marketing expenses | N/A | N/A |
Engagement initiatives to boost service utilization
To encourage service utilization, American Well has launched various engagement initiatives. For instance, the platform subscription revenue for the three months ended September 30, 2024, was $26.234 million, indicating a focus on expanding service offerings and increasing customer engagement through automated care programs. The ongoing efforts have resulted in a slight increase in visit revenue, contributing an additional $27.467 million during the same period.
| Revenue Source | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Platform subscription revenue | $26.234 million | $28.362 million | -7.5% |
| Visit revenue | $27.467 million | $26.723 million | 2.8% |
| Other revenue | $7.345 million | $6.837 million | 7.4% |
American Well Corporation (AMWL) - Business Model: Channels
Direct sales to health systems and plans
American Well Corporation (Amwell) generates significant revenue through direct sales to health systems and health plans. For the three months ended September 30, 2024, total revenue was reported at $61.046 million, while for the nine months ended September 30, 2024, it was $183.358 million. Subscription fees received from health plans were approximately $26.2 million for Q3 2024, a decrease from $28.4 million in the same period of 2023. This reflects ongoing challenges, including customer churn during the re-platforming process.
Online platform for patient access
Amwell's online platform is designed to provide patients with easy access to virtual care. The platform supports various healthcare needs, including primary care, urgent care, and behavioral health. Revenue from visit consultations remained consistent, contributing to the overall revenue despite declining subscription fees. The increase in visit revenue was $0.5 million due to a rise in special program visits during Q3 2024. The platform enables health systems to extend care beyond traditional settings, enhancing patient engagement and adherence to care plans.
Partnerships with healthcare providers
Amwell has established partnerships with healthcare providers to enhance its service offerings. A notable joint venture is with Cleveland Clinic, named CCAW, JV LLC, which focuses on delivering high acuity care services via digital platforms. As of September 30, 2024, Amwell recognized revenue of $406,000 from this partnership for the three months ended September 30, 2024. Total contributions to the joint venture since inception include an initial investment of $2.94 million, with an additional capital contribution of $1.715 million made in 2024.
| Channel | Q3 2024 Revenue (in $ millions) | Q3 2023 Revenue (in $ millions) | Change (%) |
|---|---|---|---|
| Direct Sales to Health Systems and Plans | 61.046 | 61.922 | -1.41% |
| Subscription Fees from Health Plans | 26.2 | 28.4 | -7.73% |
| Revenue from Partnerships (CCA W, JV LLC) | 0.406 | 0.397 | 2.27% |
American Well Corporation (AMWL) - Business Model: Customer Segments
Health systems seeking digital care solutions
American Well Corporation (AMWL) provides digital care solutions tailored for health systems looking to improve patient outcomes and operational efficiency. The company’s enterprise platform supports various use cases such as provider-to-provider virtual care, enabling health systems to extend care beyond traditional settings.
In Q3 2024, subscription revenue from health systems was impacted by customer churn during a re-platforming phase, resulting in a decline of $2.2 million compared to the previous year. However, growth in strategic accounts partially offset these losses.
The total revenue for the nine months ended September 30, 2024, was $183.4 million, down from $188.4 million in the same period in 2023. This indicates a slight contraction in overall business, yet reflects the ongoing demand for digital care solutions among health systems.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Subscription Revenue from Health Systems | $26.2 million | $28.4 million | -7.8% |
| Total Revenue | $61.0 million | $61.9 million | -1.5% |
| Net Loss | $(44.0) million | $(137.1) million | +67.9% |
Health plans looking to enhance member services
American Well’s solutions for health plans focus on enhancing member services through a member-centric hybrid care experience. The enterprise platform allows seamless integration with existing technologies and supports a wide range of healthcare needs, including primary care and urgent care services.
In Q3 2024, total subscription fees from health plans were reported at $26.2 million, compared to $28.4 million in Q3 2023. The decline indicates challenges in maintaining subscription levels amid evolving market conditions.
The typical health plan contract includes a recurring subscription fee based on member access, with additional fees for expanded services. As health plans grow their offerings, subscription fees correspondingly increase, reflecting the scalability of American Well’s solutions.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Subscription Revenue from Health Plans | $26.2 million | $28.4 million | -7.8% |
| Total Revenue | $61.0 million | $61.9 million | -1.5% |
| Net Loss | $(44.0) million | $(137.1) million | +67.9% |
Government entities requiring tailored healthcare options
American Well also serves government entities, providing tailored healthcare options that efficiently meet the diverse needs of personnel and families. The Amwell Converge platform enables government healthcare providers to extend care with both on-demand and scheduled options.
The platform supports a broad range of healthcare services including urgent care, primary care, and behavioral health. This adaptability is crucial for government clients, who require flexible solutions to accommodate various healthcare needs.
In terms of financial performance, the company recognized revenues from government contracts, contributing to the overall revenue stream. For the nine months ended September 30, 2024, the total revenue was $183.4 million, reflecting a decrease from the prior year.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue from Government Contracts | Data not specified | Data not specified | N/A |
| Total Revenue | $61.0 million | $61.9 million | -1.5% |
| Net Loss | $(44.0) million | $(137.1) million | +67.9% |
American Well Corporation (AMWL) - Business Model: Cost Structure
Research and Development Expenses
For the three months ended September 30, 2024, American Well Corporation reported research and development expenses of $19,797,000, a decrease from $27,715,000 in the same period of 2023, marking a 29% decline. For the nine months ended September 30, 2024, R&D expenses totaled $67,283,000, down 15% from $79,480,000 in 2023.
| Period | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| R&D Expenses | $19,797,000 | $27,715,000 | -29% | $67,283,000 | $79,480,000 | -15% |
Operational Costs Linked to Provider Services
The operational costs associated with provider services amounted to $38,352,000 for the three months ended September 30, 2024, down from $40,457,000 in Q3 2023, a reduction of 5%. For the nine months ended September 30, 2024, these costs totaled $118,799,000, representing a slight increase of 1% compared to $117,453,000 in the same period of 2023.
| Period | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Operational Costs | $38,352,000 | $40,457,000 | -5% | $118,799,000 | $117,453,000 | +1% |
Marketing and Sales Expenses
For the three months ended September 30, 2024, marketing and sales expenses were $16,771,000, down from $20,379,000 in Q3 2023, reflecting an 18% decrease. In the nine months ending September 30, 2024, these expenses totaled $60,883,000, which is 6% lower than $64,659,000 reported in the same period of 2023.
| Period | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Marketing and Sales Expenses | $16,771,000 | $20,379,000 | -18% | $60,883,000 | $64,659,000 | -6% |
American Well Corporation (AMWL) - Business Model: Revenue Streams
Subscription fees from enterprise software
For the three months ended September 30, 2024, American Well Corporation reported total subscription revenue of $26.2 million, a decrease from $28.4 million for the same period in 2023. For the nine months ended September 30, 2024, subscription revenue was $78.6 million, down from $85.1 million in the prior year. The decline in subscription revenue was attributed to customer churn during re-platforming efforts.
| Period | Subscription Revenue |
|---|---|
| Q3 2024 | $26.2 million |
| Q3 2023 | $28.4 million |
| 9M 2024 | $78.6 million |
| 9M 2023 | $85.1 million |
Fees from clinical services provided by AMG
American Well’s clinical services offered through the AMG network are billed on a fee-for-service basis. For the three months ended September 30, 2024, the company recognized revenue of $7.3 million from clinical services, compared to $6.8 million for the same period in 2023. For the nine months ended September 30, 2024, AMG services generated $17.5 million in revenue, up from $15.9 million in the previous year.
| Period | AMG Clinical Services Revenue |
|---|---|
| Q3 2024 | $7.3 million |
| Q3 2023 | $6.8 million |
| 9M 2024 | $17.5 million |
| 9M 2023 | $15.9 million |
Sales of Carepoint devices and related services
American Well's Carepoint devices are integrated with their enterprise software, enhancing service delivery in clinical settings. The revenue from Carepoint device sales and related services for the three months ended September 30, 2024, was $7.3 million, compared to $6.8 million in Q3 2023. For the nine months ended September 30, 2024, total revenue from these sales reached $17.5 million, an increase from $15.9 million a year earlier.
| Period | Carepoint Devices Revenue |
|---|---|
| Q3 2024 | $7.3 million |
| Q3 2023 | $6.8 million |
| 9M 2024 | $17.5 million |
| 9M 2023 | $15.9 million |
Article updated on 8 Nov 2024
Resources:
- American Well Corporation (AMWL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of American Well Corporation (AMWL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View American Well Corporation (AMWL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.